1991 Automatic Volvo 240 with 147,500 miles.

In good shape, although its first winter in Vermont did a number on it.

Two problems: 1) When I was driving around today testing the new pads I replaced, I noticed a brake failure warning light. I finally got around to purging the air from the brake system from last time I bled it (I settled for a slightly squishy pedal). I replaced the front brake pads, though I couldn't fit the shims in there. On the back brakes the pads were at ~6-7mm, so I just replaced the pins and springs, and greased the seals and pistons. I finally have a hard pedal, so I'm not sure why I have a brake failure warning. Any ideas?

2) When I got the calipers back onto the brakes, the rotor wasn't turning freely-the brakes were rubbing quite a bit on the rotor. Even on the back brakes (more the left than the right), where I re-installed the same pads, there was some drag. Is this normal after changing the brakes? Do they take some time to "break" in?

Thanks for your help,

Jimmy